Social. Political. Economic. Career| Seyed Ibrahim

Serious issues & ideas. Trusted Sources.

Tamil Nadu Real Estate: Lessons Learned

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People to be cautious about

  1. Unless you know their previous business transactions, do not buy from politicians and their affiliates. They can be vague when they speak, can create troubles as the deal progresses thru, or even after buying / selling. If you rent your house/flat to them, you may have to spend a fortune to vacate them
  2. Stay away from people who say “I can do anything in any office”, “Local Govt officials are in my pocket”, “Don’t worry about legalities or formalities”, “No need for written agreements. I have done 20 sales without any agreement”, etc. Skipping formalities can come back to hurt you

Buying a house site (In the City)

  1. Visit the site. Look around – are there polluting industries? Are there factories or industries that use a lot of ground water? Some non-local people (like NRIs) have bought the lands without seeing them, and regretted later
    • If you can’t visit, at the least, ask for 360 degree video and/or photos (four directions)
    • DON’T assume that your friend or relative, who is recommending a land, is both Knowledgeable AND ethical/honest
  2. Get a copy of the sale deed, prior sale deed (மூல பத்திரம் / தாய் பத்திரம்), latest copy of Encumbrance Certificate (EC / வில்லங்க சான்றிதழ்), and Town Survey Register (பட்டா). Don’t proceed (Stop the purchase) if
    • the registration date (back sides of the Sale deed) is earlier than the stamp paper purchase date (first page). This is a fake document
    • the column 7 in TSR mentions “புற”, புறம்போக்கு or Poramboke
  3. Ask to see the original sale deed. Run away, if the seller says he lost the original sale deed recently. He may have already sold this land to another guy, or mortgaged the original sale deed with a bank. In any case, DON’T continue the discussion
  4. Check all the documents with a lawyer
  5. Agree, in writing, if you are going to pay by Square feet (e.g.: Rs. 2000 per actually available sq ft) or by the lot (e.g.: 20 lacs for this piece of land, irrespective of the available size). This is important because there may be difference between what is mentioned in the documents, and what is really available when you measure. There may be encroachments from neighbors, and you wont know from which side.
    • Note that measuring by Tape isn’t accurate, if the land isn’t a perfect rectangle
  6. Get a topographical survey (Digital Measurement) of the site. It may cost Rs. 5000 to 10,000. That gives an accurate measurement of your site

Buying a Plot (Outside the City)

  1. Points 1 to 4 mentioned for buying land applies to plots too
  2. Are there lakes or ponds around your plots?
  3. Check with the locals the possibility of flooding during rainy season. Or, visit the place after rains
    • Taste the local ground water
  4. Check if DTCP approval paper includes the respective Office Seal & Officer’s Signature (Sounds simple, but people miss)
  5. The interior roads must be at least 23 feet (legally it is 20 ft in Panchayats), and the main roads be 30 feet
  6. Make a relaxed 2nd trip to the site, without the brokers / sellers. Your first trip is fully controlled by the them. So, you would not have noticed certain things
  7. Don’t decide / finalize in a hurry – even if a “visitor” (many times these people were set-up by the brokers) tells you that some companies, or 4-way highway, are coming soon to the area
  8. Examine if the approval is for the whole “Nagar”, or just for a portion of it
    • Sometimes, approvals are received for one survey, but the plots cover neighboring / next survey also



1. Register with just a single Rs. 100 or Rs. 500 Stamp paper (For the first page). Use the Bond papers (100-GSM) for the remaining pages

  • Higher denomination stamp papers (like Rs. 5000) may be fake, possibly invalidating the transaction itself
  • The stamp papers may be damaged while printing. You need to take them to RBI
  • With bond papers, if you make any mistakes in typing you can throw that sheet and add a new one. Mistakes on Stamp paper don’t look good
  • You can print more lines (20 lines+) in a bond paper. Only 50% of the space is available to print in Stamp papers
  • Ignore the advices that say using all stamp papers is better or gives more “weight”

2. Flats: A “Construction Agreement” is a must to register UDS (Undivided Share). Even if you are going to build flats (as opposed to buy flats from builders), Registrars will ask for Construction Agreement

3. Immediately after the registration, collect the ORIGINAL Sale Deed from the owner


Last Update: May 14, 2014. Will keep updating, God Willing

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Disclaimer: I am not a real estate broker, expert or a lawyer. The above points are only suggestions i have learned from others and magazines.



Written by S Ibrahim

May 7, 2014 at 10:51 pm

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